Organizational behavior 7e by luthans chap003

• Present the modern horizontal, network, and virtual designs of organizations.. • Organization structure represents the skeletal framework for organizational behavior.. • Cultural con

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc All rights reserved.

Organizational Context: Design and

Culture

Chapter Three

Learning Objectives

• Explain the organization theories of open systems,

information processing, contingency, ecology, and learning

• Present the modern horizontal, network, and virtual

designs of organizations

• Define organizational culture and its characteristics.

• Relate how an organizational culture is created.

• Describe how an organizational culture is

maintained

• Explain some ways of changing organizational

culture

• Organization structure represents the

skeletal framework for organizational behavior.

– Consists of very flexible networks.

– Recognizes the interaction of information

technology and people

• Cultural context that the organization

provides for organizational behavior.

Organization Theory

• Historical roots - Chester Barnard.

– Cooperative system is contingent on the

human participants’

• Ability to communicate

• Willingness to serve

• Strive toward a common purpose

• Organization as an open system

– input → transformation process → output

Organization Theory

Continued

• Information processing view of

organizations

– External and internal uncertainties

– Become a networked, information processing systems

• Contingent and ecological organization

theories

– Learning organization represents the latest

thinking in organization theory and compatible with the new paradigm environment

Organization Theory

Continued

• A learning organization

– Single loop learning

– Double loop learning

• Organizational behavior in the learning

organization.

– Associated with employees’ reacting to

environmental changes and characterized by human-oriented cultural values

• Learning organizations in action.

Characteristics of Learning Organizations

Traditional versus Learning Organizations

Modern Organization Designs

• Horizontal organizations

– Relevant to today’s environmental needs for flexibility,

speed, and cooperation.

• Network designs

– Involves a unique combination of strategy, structure,

and management processes.

• Virtual organization

– Temporary network of companies that come together

quickly to exploit fast-changing opportunities.

Traditional Hierarchical versus the

Network Organization

The Contrast Between the Hierarchical

and Network Organization

Example of a Virtual Organization

Organizational Culture Context

• Definition and characteristics

– Recognize the importance of shared norms

and values that guide organizational

participants’ behavior

• Uniformity of culture

– Organizational culture, a common perception

held by the organization’s members

• Dominant culture

• Subculture

Creating and Maintaining a Culture

• How organizational cultures start

– Common steps include the formation of an

idea, a core group, action plan, and

implementation

• Maintaining cultures through steps of

socialization

– Selection of entry-level personnel

– Placement on the job

– Job mastery

Steps of Organizational Culture

Socialization

Creating and Maintaining a Culture

Continued

• Maintaining cultures through steps of

socialization (continued)

– Measuring and rewarding performance

– Adherence to important values

– Reinforcing the stories and folklore

– Recognition and promotion

Creating and Maintaining a Culture

Continued

• Changing organizational culture

– Case of mergers and acquisitions

• Focus areas: structure, politics, and emotions.

– Case of emerging relationship enterprises

• Success dependent on trust, communication, and

negotiation skills.

– Guidelines for change

• Caution: pragmatically changing an organizational

culture affects almost every aspect of the business.

Questions